Chinese set to enter Aussie live export trade

Chinese consortium Sinomarine Livestock Shipping Company is planning to launch two refurbished livestock ships into the Australian market.

Based in Dalian, in Liaoning province, the joint venture comprises three companies and is expected to have the first of two $US25 million ($33 million) vessels approved for sailing in Australian waters and in operation this month.

The commissioning of bulk carrier MV Yangtze Harmony and, shortly after, its sister ship MV Yangtze Fortune will make it the third company to export live cattle to China.

Elders subsidiary North Australian Cattle Company recently revealed it would ship a consignment of slaughter cattle from Victoria in the next few weeks.

Fremantle-based exporter Wellard is expected to follow suit between March and June.

The NACC consignment has been touted in the media as potentially being Elders’ last livestock export consignment before it moves on plans to sell the subsidiary.

The Australian Livestock Exporters’ Council believes that the Chinese market could underpin a one million-head trade to Asia.

Sinomarine’s new contract ships will have capacity for up to 5500 cattle and 18,000 sheep, and will primarily service ports in Australia, New Zealand and the US.

WA-based Harmony Agriculture and Food Company will assist with the commercial operation of the vessels.

“The partners have been working on this project for more than two years to make sure that they would be built fit for purpose,” Harmony executive general manager Steve Meerwald said.

“Both ships fill a gap in the shipping market by offering exporters a vessel that is in between too small and too big.

“It’s no secret that it has been difficult in recent times to fill the larger boats and this well help to resolve that issue.”

“The medium size will also fit the Chinese market very well in the short to medium term while it is in the early stages of development.”

He said the first shipment could leave from Fremantle, however, no firm plans had been made.

“These boats will be for contract use and could be utilised wherever there is a need for them,” Mr Meerwald said.

“Our company has been exporting dairy breeding cattle to China for several years and the boats are ideal for that, as they are slaughter cattle and sheep.”